New Zealand Oil&Gas finished the June quarter with a net cash position of $80 million.Operating revenue for the quarter was $31.3m, of which $13.1m was from the sale of Tui oil and $18.2m from the sale of Kupe sales gas, LPG and light oil, NZOG said t
New Zealand Oil&Gas finished the June quarter with a net cash position of $80 million.
Operating revenue for the quarter was $31.3m, of which $13.1m was from the sale of Tui oil and $18.2m from the sale of Kupe sales gas, LPG and light oil, NZOG said today.
During the June quarter short term financing provided to Pike River Coal was repaid, while NZOG participated in Pike's $10m placement and $40m rights issue to the extent of its existing 29.5 percent equity interest.
NZOG also issued Pike with a new convertible bond facility for $US28.9m with an annual interest rate of 10 percent.
NZOG said that as at June 30 its cash balance was the equivalent of $143m. With $63m having been drawn from a $75m debt facility with Westpac, the company had a net cash position of $80m.
In its quarterly activities report, NZOG said the BP oil spill in the Gulf of Mexico demonstrated the need for health, safety and environmental performance to always be the number one priority in the petroleum industry.
NZOG also said it was in talks with a number of companies regarding its farm-out of the Kaupokonui prospect in southern offshore Taranaki. NZOG currently holds a 100 percent stake in the prospect but intends to reduce that holding by attracting one or more partners prepared to commit to drilling at least one exploration well.
The prospect had estimated mean prospective recoverable resources of more than 200 million barrels of oil, and a preliminary well plan and budget for an exploration well had been obtained, NZOG said.
A commitment was required by January 2011 to drill a well within the following 12 months.
